NYSE$ACCO

ACCO Brands Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ACCO Brands' fourth quarter earnings decreased due to lower sales related to COVID-19 impacts, inefficiencies related to lower volume, and increased freight costs and bad debt reserves, partially offset by cost reductions and foreign government assistance programs.

ACCO Brands' fourth quarter net sales decreased by 14.4% to $460.1 million, and EPS decreased to $0.31 from $0.44 in the prior year. The company acquired PowerA, a leader in video gaming accessories, and paid $6 million in dividends.

  • EPS of $0.31 versus $0.44 in prior year
  • Adjusted EPS of $0.32 versus $0.46 in 2019
  • Net sales $460.1 million, down 14.4 percent from 2019
  • Acquired PowerA, a leader in video gaming accessories

Headline financials

Total Revenue

$460M

Previous: $537M-14.4%
EPS (adj)

$0.32

Previous: $0.46-30.4%
Capital Expenditures

$3.5M

Previous: $10.9M-67.9%
Free Cash Flow

$93.9M

Previous: $118M-20.4%
Net Income

$29.8M

Previous: $43.5M-31.5%
Operating Income

$42.2M

Previous: $68.1M-38.0%
Gross Profit

$143M

Previous: $186M-23.1%
Cash & Equivalents

$36.6M

Previous: $27.8M+31.7%
Total Assets

$3.05B

Previous: $2.79B+9.3%
Stock-Based Comp

$1.3M

Previous: $3.8M-65.8%

Revenue & EPS history

ACCO Brands · Revenue · Quarterly

$460M

Q4 2020-14.4%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company believes its first quarter sales will be in range of flat to up 4 percent, and adjusted earnings per share will be in a range of zero to $0.06.

Tailwinds

  • Including PowerA, we believe our first quarter sales will be in range of flat to up 4 percent
  • Adjusted earnings per share will be in a range of zero to $0.06
  • Our outlook includes a favorable foreign exchange impact of 4 percent on sales
  • Our outlook includes a favorable foreign exchange impact of $0.02 on adjusted EPS
  • Our outlook includes $0.09 from the exclusion of intangible amortization

Headwinds

  • Historically, the first quarter has been our seasonally smallest quarter.
  • We continue to take the right actions to withstand the near-term economic and industry headwinds.
  • We have made great strides in transforming our company into a more consumer- and technology-oriented business and strengthening our position in growing channels and categories.
  • Our balance sheet remains solid
  • We are confident in our ability to generate consistently strong free cash flow

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+1.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+26.2%

Q3 2016

Best reaction

-19.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+23.1%+25.5%+23.7%
Q4 2025-6.6%-13.6%-25.6%
Q3 2025-6.9%-4.6%-12.0%
Q1 2025-5.6%-8.0%-7.0%
Q4 2024-17.4%-17.6%-21.4%
Q3 2024+5.8%+16.9%+17.1%
Q2 2024-9.0%-9.0%+7.2%
Q1 2024+2.5%+3.2%+6.9%
Q4 2023-13.4%+8.0%-4.2%
Q3 2023-0.6%-5.5%+7.7%
Q2 2023-4.5%-7.3%-13.2%
Q1 2023+15.6%+16.3%+16.3%
Q4 2022-3.6%+1.4%-11.4%
Q3 2022+15.6%+19.7%+24.1%
Q2 2022-8.8%-2.2%-20.7%
Q1 2022-5.2%-6.4%-6.4%
Q4 2021+8.4%+10.2%+2.6%
Q3 2021-6.3%-6.7%-0.1%
Q2 2021+8.8%+8.1%+14.8%
Q1 2021+4.1%+0.4%+5.7%
Q4 2020-6.3%-7.6%-2.4%
Q3 2020-9.8%-15.4%+30.2%
Q2 2020+1.9%-5.0%-3.6%
Q1 2020-11.4%-10.3%-3.1%
Q4 2019+13.2%+7.1%-32.7%
Q3 2019-11.2%-8.6%-8.4%
Q2 2019+19.9%+18.1%+13.6%
Q1 2019-3.1%-4.5%-16.9%
Q4 2018-2.4%+0.5%-3.1%
Q3 2018-19.1%-10.2%-18.7%
Q2 2018-6.6%-5.9%-9.6%
Q1 2018-1.7%-2.1%+7.1%
Q4 2017+23.3%+22.4%+19.3%
Q3 2017+0.0%-1.5%+2.7%
Q2 2017-9.4%-6.4%-6.0%
Q1 2017-5.3%-11.6%-17.3%
Q4 2016+8.9%+7.8%+0.8%
Q3 2016+26.2%+21.8%+39.4%
Q2 2016-10.7%-11.2%-10.1%
Q1 2016+7.2%
Q4 2015+9.4%
Q3 2015-0.4%
Q2 2015+12.4%
Q1 2015-6.6%
Q4 2014-6.2%
Q3 2014+7.6%
Q2 2014+9.8%
Q1 2014+2.2%
Q4 2013+2.4%
Q3 2013-17.5%
Q2 2013-6.7%
Q1 2013-3.2%
Q4 2012-4.6%
Q3 2012+24.1%
Q2 2012-17.1%
Q1 2012+3.4%
Q1 2011+3.4%
Q4 2011+1.9%
Q4 2009+1.9%
Q3 2011+21.9%
Q3 2010+21.9%
Q4 2010+17.3%
Q2 2011+17.3%
Q2 2010+17.3%
Q1 2010-2.0%

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